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Senator Collins’ Committee Examines Predatory “Payday” Loans Issued by Online Lenders

Senator Collins’ Committee Examines Predatory “Payday” Loans Issued by Online Lenders

Maine Bureau of Credit Rating Protection Formal Testifies Ahead Of The Senate Aging Committee

WASHINGTON, DC—Even though Maine regulations prohibit the kind of abusive, extremely high-interest, short-term lending techniques usually linked with “payday” loans, this particular unscrupulous financing nevertheless happens in Maine through Internet-based financing businesses, driving numerous customers even more into financial obligation. The Special Committee on Aging, of which Senator Collins could be the Ranking Member, analyzed dilemmas associated to payday loans and deposit advance items during a hearing entitled, “Payday Loans: Short-Term Solution or Long Term Problem? ”

Eric Wright, an employee Attorney for the Maine Bureau of credit rating Protection testified in regards to the unpleasant prevalence of online financing that Maine customers have actually faced. Based on Wright, his division receives calls that are daily Mainers victimized by these on the web loan providers.

Senator Collins, whom formerly served as Maine Commissioner of pro and Financial Regulation and oversaw the Maine Bureau of credit Protection within the McKernan Administration stated, “We are lucky that Maine’s laws and regulations prevent abusive ‘payday’ loans, which could commit borrowers to spending almost 400 % percentage that is annual, as well as greater, on short-term loans. Under these terms, borrowers, that are generally speaking currently struggling economically, are driven more deeply into financial obligation and perhaps, has to take away brand brand new loans to settle ones that are old. Lire la suite